The Tassal Group Limited (ASX: TGR) share price is rocketing higher, up 13.85% in early trade.
Tassal closed yesterday at $3.97 per share and is currently trading for $4.57.
This comes after the Tasmanian-based salmon farming company reported a takeover proposal.
What takeover bid was announced?
The Tassal share price is surging after the company revealed it has received a "non-binding, indicative, incomplete and conditional" takeover proposal from Cooke Inc.
Cooke, a large, privately-held, Canadian-based seafood company, proposes to acquire 100% of the company's shares in cash for $4.85 per Tassal share. That's 22% higher than the Tassal share price at yesterday's close.
With 214.82 million shares outstanding, the bid values the Aussie salmon farmer at just north of $1.04 billion.
Cooke disclosed it had acquired 5.4% of Tassal shares after the market close yesterday. The Canadian-headquartered company reported it has obtained Foreign Investment Review Board (FIRB) approval.
This isn't the first time Cooke has attempted to reel in Tassal. Its offered two prior indicative non-binding confidential proposals, the first for $4.67 per Tassal share and the second for $4.80 per Tassal share.
After evaluating the earlier proposals, the Tassal Board opted not to pursue them.
As for the latest proposal, the board says it believes "Tassal has an attractive independent future and is well positioned to deliver growth in shareholder value."
[The Board] has determined that the Indicative Proposal does not reflect the fundamental value of the business and is not in the best interests of shareholders. Accordingly, the Company's Board has determined not to engage with Cooke regarding the Indicative Proposal. Shareholders are advised that they do not need to take any action.
Goldman Sachs is acting as Tassal's financial advisor.
Tassal share price snapshot
The Tassal share price has been a strong outperformer in 2022, up 30%.
That compares to a year-to-date loss of 13% posted by the All Ordinaries Index (ASX: XAO).